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Basic Question 0 of 12
The owner of a large pet store chain in the United States wants to open a store in a new city. He is interested in the number of households in this city with pets. The owner randomly surveys 800 of the city's households, which shows that 82% of the 800 households have pets.
B. parameter; Opening a pet store in the new city is a good idea.
C. statistic; Opening a pet store in the new city is a good idea.
Does "82% of the 800 households have pets" describe a statistic or a parameter, and what conclusion might be drawn from the survey using inferential statistics?
A. parameter; Opening a pet store in the new city is not a good idea.
B. parameter; Opening a pet store in the new city is a good idea.
C. statistic; Opening a pet store in the new city is a good idea.
User Contributed Comments 7
| User | Comment |
|---|---|
| cbb1 | Statistic relates to a sample; parameter relates to a population |
| Carter | You got it. |
| Bibhu | Good answer |
| cp24 | p - p ; s - s |
| vivacita | so in this case, what could be the parameter? |
| mynotes | Getting parameter value is costly, that's why owner selected the random sample of size 800. However to your answer: (e.g.) 82% of all households in a new city have dogs. |
| 2014 | Parameter is computed from sample. Statistcis means analysis and interpretation of information for decision making. 82% is analysis used for making decision |
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Learning Outcome Statements
calculate and interpret measures of central tendency;
evaluate alternative definitions of mean to address an investment problem;
CFA® 2024 Level I Curriculum, Volume 1, Module 2.